Bio-butanol Market - Global Industry Insight, Trends, Outlook, and Opportunity Analysis 2018-2026

Bio-butanol is an alcohol used as a fuel or organic solvent. This solvent is prepared by fermenting sugar, starch or cellulosic feedstock such as wheat, sugar beet, corn, straw, and wood. Bio-butanol is used as a substitute to crude oil. They have higher octane number, larger flammability limits, higher flash point, and higher heat of vaporization, makes it a good fuel option. Bio-butanol easily blends with gasoline due to its low vapor pressure. It has the potential to generate energy equivalent to gasoline and is non-corrosive in nature, due to which it is considered to be of greater advantage than bio-ethanol.

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Bio-butanol is also used as a cleaner, adhesives, jet fuel, synthetic rubber, solvent in paints, bio-based plastics, and fibers. They are also expected to meet 20% of the demand for fuel, globally. Growing demand for clean energy, is the main factor boosting demand for bio-butanol.

Bio-butanol exhibit polymer chain formation and blending properties, due to which it finds its application in products such as acrylates, acetates, glycol ethers, solvents, and plasticizers.

Lack of availability of raw material is a major concern associated with bio-butanol preparation, in turn, increasing the cost of the product, thus, posing as a restrain to market growth. Bio butanol is used as a fuel for internal combustion engines in the petrochemical and automotive industry. Bio-butanol has the potential to reduce carbon emissions by 85% as compared to gasoline.

North America holds the largest market share due to low temperature weather in most of the countries of the region. Europe is the second-largest market, globally. Significant investment in R&D in these regions has resulted in alternatives for petroleum derived fuels.

Asia Pacific is estimated to be the fastest growing market over the forecast period due to the growing population in the region, which in turn, is increasing the demand for cleaner fuel for transportation as well as greener paints and coatings to support the growing construction industry in the region. India and China are expected to be major growth engines due to growing aviation and transportation industries in the countries.
Bio-butanol Market Challenges

Some of the key companies operating in the market are Biobutanol include Bioenergy International, Butalco GmBH, Cobalt Biofuels, and Arbor Biofuels, backed by oil manufacturers such as TetraVitae Biosciences and Metabolic Explorers.

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